The punishment for failing to fully disclose financial information during bankruptcy is up to 5 years in jail and a fine of up to $250,000. You must fully disclose your full financial picture during bankruptcy, which means completing the financials on the petition and schedules as accurately as possible. One of the most common "mistakes" made by debtors filing bankruptcy is that they "forget" about property, usually in another state, especially if the property is being occupied by family members who may or may not be paying the mortgage. Just so that we're clear about this issue you must disclose all property you own during bankruptcy.
This includes; but is not limited to:
- Real Estate
- Stocks, Bonds, Mutual Funds, Treasury Bills etc.
- Property you recently transfer to another
On the last note, any property transfers (from you to another) must be reported during bankruptcy. Failure to do so could result in stiff penalties and jail time. If after filing for bankruptcy you realize that you have inadvertently failed to disclose some assets contact your bankruptcy attorney immediately.